Firstsource Q2 net profit grows 24%

Revenue for quarter at Rs 791 cr increased 10% from Rs 718 cr in corresponding quarter last fiscal

RP Sanjiv Goenka group company Firstsource, has continued its growth story and managed to deliver profitable second quarter numbers for FY14.

Firstsource net profit for the quarter ended September 30, 2013 grew 24.5% at Rs 44.8 crore from Rs 359 million for the quarter ended September 2012. Revenue for the quarter at Rs 790.8 crore increased 10.2% from Rs 717.6 crore in the corresponding quarter last fiscal.

“I am delighted with the progress that Firstsource has made over the quarters. The company’s focus on driving value and customer satisfaction is razor sharp and we are seeing results to this effect. I believe that Firstsource is well positioned for growth in the BPM industry,” said Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group and Firstsource.

During the quarter, the company added a new client in it healthcare payer segment, L A Care Health Plan. It also managed to win additional contracts from two of its existing clients.

For the quarter, the operating EBIT (earnings before interest and tax) of Rs 69.1 crore, was up 10.7% Q-o-Q compared to Rs 62.4 crore for the quarter ended June 2013 and up 52.9% Y-o-Y compared to Rs 452 million for the quarter ended September 2012.

Rajesh Subramaniam, Managing Director & Chief Executive Officer, said, “Our second quarter results have demonstrated margin expansion on the back of a strong operational performance. We continue on the path of profitable growth. Our investment in productisation of services is seeing traction from clients and a concerted effort is being made to broaden our capability suite of value added services. The quarterly repayment of $11.25 million on the outstanding debt was successfully paid.”

At the end of the quarter the company had total cash of Rs 150 crore.

As of September 30, 2013 Firstsource’s employee strength was at 30,390. A reduction of 1,233 employees in the quarter. Attrition continued to be on the higher side. Offshore attrition (India and Philippines) was 57.3% from 52.7% last quarter. Onshore attrition was 47.4% and domestic attrition was 85.6% down from 101.3%.